The count of corporate bankruptcies in the European Union reached its highest level in the second quarter of 2023, since the commencement of data recording in 2015, as announced by the EU statistical agency Eurostat.
This number has been escalating for the sixth consecutive quarter. According to Eurostat’s report, during the second quarter, there was an 8.4% increase in the number of companies declaring bankruptcy across the EU compared to the first quarter.
The most significant surge in the count of companies going bankrupt in the second quarter was observed in Hungary (40.8%), Latvia (24.8%), and Estonia (24.6%), while the most substantial reduction in the number of companies facing bankruptcy occurred in Cyprus (48.5% fewer), Croatia (23.6%), and Denmark (15.9%).
Eurostat points out that a higher number of bankruptcies was observed in all sectors of the economy, with the most substantial increase noted in the accommodation and hospitality sector (23.9%), transportation and storage (15.2%), and education, healthcare, and social activities (10.1%).
In comparison to the last three months of 2019, fewer companies declared bankruptcy in only two sectors: industry (11.5% fewer) and construction (2.7%).
Simultaneously, the count of newly established companies experienced a slight dip by 0.6% in comparison to the first three months of this year, which had witnessed a growth of 2%.
Poland, Bulgaria, and Denmark saw the most significant decrease in new business registrations, while the most substantial growth was recorded in Ireland, Slovakia, and Germany.